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Items", with the total budgeted cost for each such line item, inclusive of Developer Base Cost if <br /> and as applicable, referred to herein as the "City Improvements Line Item Total Cost"). <br /> 1.4 The City has determined that the Public Improvements qualify for cost participation <br /> by the City and the City desires to have the Developer design and construct both the Developer <br /> Improvements and the City Improvements subject to the terms of this Agreement. <br /> II. AGREEMENT <br /> In consideration of the mutual benefits to and obligations of the parties under this <br /> Agreement,the parties agree to the following terms and conditions: <br /> 2.1 Design and Construction of Public Improvements. <br /> 2.1.1 Design and Construction. The Public Improvements will be constructed by <br /> Developer in accordance with the Approved Sewer Plans. Developer will be responsible <br /> for entering into one or more contracts for the construction of the Public Improvements <br /> (the "Construction Contracts") and will provide copies of the Construction Contracts, <br /> together with any change orders or amendments,to the City. <br /> 2.1.2 Project Manager. The Developer will act as project manager in the <br /> construction of the Public Improvements. If the plans for the Public Improvements are <br /> required to be sealed by a professional engineer, the Developer will ensure that the <br /> construction is carried out under the direct supervision of a professional engineer registered <br /> in the State of Texas. <br /> 2.1.3 Independent Contractor. The Developer shall be solely responsible for <br /> selecting, supervising and paying the construction contractor(s) or subcontractors and for <br /> complying with all applicable laws, including but not limited to all requirements <br /> concerning workers compensation and construction retainage. The parties agree and <br /> understand that all contractors, employees, volunteers and personnel furnished or used by <br /> the Developer in the installation of the Public Improvements shall be the responsibility of <br /> the Developer and shall not be deemed employees or agents of City for any purpose. <br /> 2.1.4 Performance Bond. A performance bond naming the City as an obligee will <br /> be provided by the Developer to ensure completion of the Public Improvements. <br /> 2.1.5 Warranty. The Construction Contracts will provide for at least a one-year <br /> warranty against defects in materials and workmanship. This warranty obligation shall be <br /> covered by any performance or payment bonds required of the contractors under the terms <br /> of the Construction Contracts. <br /> 2.1.6 Completion and Acceptance. Subject to Force Majeure(defined below),the <br /> parties currently estimate a completion date for the Public Improvements to be on or about <br /> September 30, 2018. The date of completion for each of the applicable Public <br /> Improvements shall be the date on which the City accepts the applicable Public <br /> 2 <br />